IETF for Industrial Solar: Closed — What to Use Now
The Industrial Energy Transformation Fund (IETF) is closed to new applications, and the government has confirmed there will be no further windows. Here is what it funded, and how UK manufacturers pay for solar today.
What the IETF was
The IETF was a government capital grant for high energy users in England, Wales and Northern Ireland, funding energy-efficiency and decarbonisation projects on industrial sites. Grants typically covered 30–50% of eligible costs, and Phase 3 set a minimum grant of £75,000 for smaller businesses. In July 2025 the government confirmed that the planned second Phase 3 window would not go ahead, and no successor scheme has been announced.
How industrial sites fund solar now
- Capex with the Annual Investment Allowance (AIA) — 100% of qualifying spend deducted in year 1, up to £1m a year. At 25% corporation tax that is 25p back for every £1.
- Above £1m — companies can claim a 50% first-year allowance on the special-rate spend above the limit, with the balance written down at 6% a year.
- Asset finance — spread the cost while still owning the system.
- Power Purchase Agreement (PPA) — no upfront cost: you buy the solar power at an agreed rate, and the funder owns the system and claims the allowances.
- Scotland — the Scottish Industrial Energy Transformation Fund (SIETF) is run separately; check whether a window is open.
How KMM funds industrial solar
Four steps from first look to a proposal you can take to your board.
Half-hourly data audit
We model your site's demand from 12 months of half-hourly data before sizing anything.
Fully funded survey
Drone survey, structural assessment and a DNO capacity check.
Funding comparison
Capex with the Annual Investment Allowance, asset finance and a PPA, modelled side by side for the same system.
Bespoke proposal
A bound-in proposal with payback maths and the funding route that suits your cash and tax position.
How KMM helps
We check whether any grant is genuinely open for your site when we build your proposal. If none is, we show you the numbers without one — no grant is assumed in the maths until it is confirmed.
Real KMM commercial installs
Every case study below is a real KMM customer with measured Year 1 generation, real payback maths and named project manager.
Doctors' Surgery Solar Rescue: 100kW + Battery Backup
A Market Deeping doctors' surgery had been let down by a previous solar installer — non-stop issues, no monitoring, zero confidence. KMM installed 100kW solar, 100kW battery, Tigo optimisers on every panel.
UK Farm Solar Case Study: 3-Year Payback
UK farm sized its solar at 50,000 kWh against 37,000 kWh usage to future-proof. KMM modelled a 3-year 3-month payback and roughly £500k of 30-year savings.
UK Farm Solar: Cutting Energy Costs on a Dryer
UK farm with grid-only power and a summer grain dryer turned to solar to harness rising energy costs, drive its dryer, and earn export income.
Talk to KMM about funding industrial solar
The form below goes straight to Steve or Kieren. No call-centre, no scripts. We respond to every enquiry 9-5, Monday to Friday.
Talk to KMM about funding industrial solar
Free drone survey, funding check and a bound-in proposal within 7 working days.
